Arkansas posts largest gain in CNBC state business rankings

Arkansas rose 13 places to No. 28 in CNBC’s 2026 America’s Top States for Business rankings, the largest improvement among U.S. states in this year’s study. The move was driven chiefly by a 23-place advance in the Workforce category, as the state drew working-age adults seeking lower costs, tax advantages and access to Northwest Arkansas employers.

The gains leave Arkansas in the lower half of the overall table, underscoring the uneven nature of its improvement. CNBC’s analysis found continuing weaknesses in health care, education, technology and food security, even as job growth and worker attraction improved the state’s economic profile.

Northwest Arkansas has become a focal point for new residents, supported by the corporate presence of Walmart, Tyson Foods and J.B. Hunt Transport Services. Anthony Mosley, a realtor with Real Broker NWA, told CNBC that clients have arrived from across the United States and from abroad, with some transferred by large employers and others able to choose their location because of remote work.

Kevin and Janeen Seguin, remote employees of Utah-based Intermountain Health, moved from Utah to Pea Ridge, near Bentonville, in March after a year-long search, according to CNBC. They cited warmer weather, schools, taxes, living costs and quality of life as factors in the decision. Kevin Seguin told CNBC the couple compared states with retirement in mind, including the treatment of Social Security and income taxes.

Workforce gains lift the state

CNBC said Arkansas ranked No. 13 in Workforce in 2026, up 23 spots. The category accounted for 13.8% of a state’s total score under the network’s methodology, making it the third-heaviest weighted category in the study. Workforce analysis firm Lightcast, which supplied data for CNBC’s ranking, placed Arkansas fourth among states for worker attraction.

The state also climbed in CNBC’s Economy category, moving to No. 20 from No. 30 a year earlier. Arkansas added nearly 16,000 jobs in 2025, according to CNBC, while national job growth was broadly flat. In her April State of the State address, Gov. Sarah Huckabee Sanders said international trade missions had helped secure deals in aerospace, defense, steel, energy and advanced manufacturing, creating thousands of higher-paying jobs for residents.

Tax treatment and living costs remain part of the state’s pitch. CNBC reported that Arkansas’ top individual income tax rate is 3.7%, compared with Utah’s 4.45%. Both states tax pension benefits, but Arkansas exempts the first $6,000, while Social Security benefits are tax-free in Arkansas. Utah taxes Social Security as ordinary income, with a partial credit available, according to CNBC.

Arkansas ranked No. 19 in CNBC’s Cost of Living category, down from No. 12 in 2025, while Utah placed No. 26. CNBC attributed part of Arkansas’ slippage to rising prices in Northwest Arkansas as the region grows.

Persistent gaps hold back the ranking

CNBC ranked Arkansas No. 36 for Technology and Innovation, placing it in the bottom 10 for science research grants and patents. The state also ranked No. 36 in Education, with K-12 test scores and per-pupil spending in the bottom 10, although CNBC noted the state’s community college system as a relative strength.

Education levels also limited the Workforce score. Census Bureau data cited by CNBC showed that 16.3% of working-age adults in Arkansas hold at least a bachelor’s degree, the fourth-lowest share among states. The U.S. Bureau of Labor Statistics found that just over 4% of the state’s workforce is employed in science, technology, engineering or mathematics roles, also the fourth-lowest concentration.

Quality of Life was Arkansas’ weakest category. CNBC cited FBI statistics showing one of the country’s highest violent crime rates and National Conference of State Legislatures data indicating limited anti-discrimination protections. CNBC also counted abortion restrictions against states in the ranking, citing studies showing such policies are associated with worker outflows. Sanders has praised Arkansas’ near-total abortion ban and said in October that the state had ranked first for six years in Americans United for Life’s annual list.

Health indicators were a major drag. United Health Foundation data cited by CNBC showed Arkansas had the highest share of residents reporting frequent physical and mental stress. CNBC also reported that nearly 19% of Arkansans are food insecure, the highest rate in the country, and that the state ranked in the bottom 10 for primary care providers and near the bottom for dentists.

The Seguins told CNBC that access to specialist care has been a problem since their move. Mosley also said roads, sewers and other infrastructure need to catch up with growth. CNBC ranked Arkansas No. 23 for infrastructure, a middling result for a state now trying to convert population inflows into broader business competitiveness.

This story draws on original reporting from CNBC.